Dealership and garage owners: do you know how to avoid claims?

Did you know that...

Prevention isn't all that complicated! All you have to do is take three simple precautions!

For fire prevention

Fire alarms should be installed near exits and fire extinguishers should be installed in strategic locations, 1.5 meters above the floor.

There are three classes of extinguishers:

• Class A for ordinary combustible materials
• Class B for flammable liquids
• Class C for live electrical equipment

A multi-purpose ABC dry chemical powder extinguisher is also a good option because it can put out all fires. To determine the number of extinguishers needed, be sure to consider the maximum floor area each extinguisher can cover and the potential size of fires.

Electrical transformers are not to be used as shelves. The electrical room is not meant for storage. Electrical transformers generate a lot of heat, so never place combustible materials on or near them. In fact, don’t store anything in this room and install permanent signage. This will limit the risk of fire.

Yearly sprinkler inspections are recommended. Hire a specialized company to carry out annual system maintenance. They will make sure your sprinklers comply with your commercial insurance requirements.

Protecting your tanks

All your oil, diesel and gas tanks must be protected. Erect metal or concrete posts around the tanks. They should be no more than 1.5 meters apart. Also, install them at least 1.5 meters from the tanks, when possible. When in doubt, check with your insurer about the security requirements of your installation. Other options include concrete bumpers and large rocks.

Gas and diesel tank pumps must be 4.5 metres from any building. When you have more than one tank, make sure there is a 1-metre clearance between them.

Double wall tanks are recommended. They will last longer and offer better protection in the event of a leak. Replacing double wall tanks that are more than 20 years old is not obligatory.

The useful life of single wall tanks will depend on the thickness of the steel. Replacing them after 20 years is recommended.

Propane tanks (even 20 lb. and 30 lb. cylinders) should never be stored inside your buildings. Keep pressurized gas cylinders, empty or full, in a locked metal cage outdoors. Store gas cylinders outside your building, away from harsh weather. Be sure to post no-smoking signs near all gas cylinders.

Rags soiled in oil, flammable liquids, solvents, etc. must be disposed of in approved safety containers or containers filled with water. When fabrics are soaked in these liquids, oxidation can occur. This can generate heat and lead to spontaneous combustion, without any visible cause. Such rags must be disposed of in a metal container with a self-closing lid.

Storing used oil

Used oils must be disposed of in suitable metal or plastic tanks. Ideally, these tanks must be located outside. However, when a used oil drain pan is located indoors, a pump system to an external tank should be installed.

Preventing sewer contamination

Oil separators are mandatory. Cleaning the oil separator is the garage's responsibility, and must be carried out on a regular basis by a company specializing in used oil change. 

Disposing of batteries

Keep new batteries separate from used, defective or damaged ones. Store all batteries away from other hazardous materials.

Lithium-ion batteries should also be recovered from damaged vehicles, whenever possible.

When in doubt

Want to do more to protect yourself against damage and claims? Refer to your insurer's specialized team. They may have a few tips for you.